
PDD Holdings Inc
NASDAQ:PDD

PDD Holdings Inc



Pinduoduo Inc., founded in 2015 by former Google engineer Colin Huang, quickly rose to prominence within China's hyper-competitive e-commerce market by pioneering a unique social commerce model. Instead of the traditional solitary shopping experience, Pinduoduo transformed online shopping into a social activity where users embarked on digital adventures together. Leveraging the power of group buying, it incentivized users to form teams to purchase items at significantly reduced prices. This innovative approach was driven by a platform seamlessly integrated with social networks like WeChat, creating a vibrant community of deal-seekers engaged in gamified experiences. Such a model thrived on the synergy between collective buying power and social interaction, fueling the platform's meteoric growth and extensive user engagement.
Pinduoduo generates revenue primarily through transactions on its platform, much like its more established e-commerce rivals. The crux of its business strategy involves collecting merchant fees, which include commissions and advertisement fees from vendors seeking increased visibility among the vast Pinduoduo user base. By attracting a wide array of merchants with lower entry barriers and significant consumer data insight, the company has cultivated a diverse marketplace teeming with competitively priced products. Additionally, the platform's monetization through advertising has been instrumental in generating income, as sellers vie to highlight their offerings to the expansive audience. This enticing combination of social shopping and monetization prowess underpins Pinduoduo's compelling market position and dynamic growth trajectory in the world of e-commerce.
Earnings Calls
In the fourth quarter, the company demonstrated robust financial performance, achieving a net income of RMB 27.4 billion. For the full year, non-GAAP operating profit surged to RMB 118.3 billion. The management emphasized continuous investment in platform ecosystems and merchant support, prioritizing quality over short-term gains. They anticipate a stable revenue outlook despite competition, forecasting growth sustenance through a CNY 10 billion fee reduction program. Consumer engagement soared as promotional efforts during peak seasons saw substantial order volume growth. The long-term vision includes further enhancements in supply chain efficiencies and farmer support, aiming for sustainable growth across diverse market segments.
Management

Lei Chen was a prominent figure at Pinduoduo Inc., a major Chinese e-commerce platform known for its innovative approach to online shopping by combining social media with traditional e-commerce. He joined Pinduoduo in 2016 and played a crucial role in the company's technological development and strategic direction. Before his involvement with Pinduoduo, Lei Chen had an impressive background in engineering and technology. He earned his bachelor's degree in computer science from Tsinghua University, one of China's most prestigious universities. He later pursued further studies in the United States, obtaining a Ph.D. in computer science from the University of Wisconsin-Madison. Lei Chen's career prior to Pinduoduo includes significant contributions to the tech industry. He worked at Google, where he gained substantial experience in handling large-scale data and cloud computing, skills that would prove invaluable in his later role at Pinduoduo. During his tenure as CEO of Pinduoduo, Lei Chen focused on expanding the platform's reach while enhancing its user experience through technological innovation. Under his leadership, Pinduoduo rapidly grew to become one of China's largest e-commerce platforms, with a unique business model that leverages group buying and social sharing. In 2021, he stepped down as CEO but continued to contribute to the company as Chairman of the Board. His leadership and vision were instrumental in shaping Pinduoduo's strategies and growth trajectory.
Jiazhen Zhao is known for his association with Pinduoduo Inc., a prominent Chinese e-commerce platform. Previously, he served as the Chief Technology Officer (CTO) at Pinduoduo. In this capacity, Zhao played a critical role in overseeing the technological development and innovation that has supported the rapid growth of the platform. His background is deeply rooted in technology and engineering, contributing significantly to Pinduoduo’s competitive edge in the market through advancements in big data, artificial intelligence, and cloud computing. Zhao's leadership has been instrumental in enhancing user experience and operational efficiency at the company. Before joining Pinduoduo, Jiazhen Zhao had experience in other technology-oriented roles, which equipped him with the skills necessary to drive Pinduoduo's tech strategy. His work at Pinduoduo has been a part of the broader effort that cemented the company’s position as a leading technology-driven commerce platform in China. Details about his educational background and previous positions might not be widely available, but his influence at Pinduoduo highlights his proficiency in managing large-scale technological ecosystems.

Ms. Jun Liu is a prominent executive associated with Pinduoduo Inc., a major Chinese e-commerce platform known for its innovative group buying model. Joining Pinduoduo in its formative years, Ms. Liu has played a significant role in the company's rapid growth and strategic direction. She has been involved in various aspects of Pinduoduo's operations, contributing to its development in areas such as marketing, operations management, and strategic planning. Her expertise in the e-commerce industry and her leadership skills have been integral to Pinduoduo's success in a highly competitive market. Under her influence, Pinduoduo has expanded its user base and developed a unique social commerce experience that distinguishes it from other major platforms.
Junyun Xiao is recognized for his role as the Chief Technology Officer (CTO) of Pinduoduo Inc., a significant position within one of China's leading e-commerce platforms. As CTO, Junyun Xiao is responsible for overseeing the technological advancements and innovations that power the company's platform. His work involves enhancing user experience, improving data analytics, and ensuring the technological infrastructure can support the rapid growth and dynamic nature of Pinduoduo's business model. With a strong background in technology and development, Xiao plays a crucial role in guiding Pinduoduo's tech strategy to maintain its competitive edge in the fast-evolving e-commerce market. His contributions are pivotal in helping Pinduoduo leverage technology to connect consumers with a wide range of products through a unique, interactive shopping experience.
Xin Yi Lim is a recognized executive in the technology and e-commerce sectors, known for her role at Pinduoduo Inc. She has contributed significantly to the company's strategic initiatives, especially in areas related to growth and expansion. Lim is noted for her expertise in business development and her ability to drive innovation within the organization. She has played a key role in optimizing Pinduoduo's platform and enhancing user engagement through strategic partnerships and innovative solutions. Her work has been instrumental in positioning Pinduoduo as a major player in the competitive e-commerce market.
Nick Shu, CFA (Chartered Financial Analyst), has been associated with Pinduoduo Inc., a renowned Chinese e-commerce platform known for its unique social commerce approach. While specific details about his biography might be limited, professionals with a CFA designation like Nick Shu typically have a strong background in financial analysis, investment management, and strategic planning. In roles at companies like Pinduoduo, individuals with such qualifications often contribute significantly to financial strategy, investor relations, and overall corporate financial health. They are instrumental in ensuring the company navigates the complexities of market trends, financial risks, and opportunities for growth. Nick Shu's expertise would likely encompass these areas, contributing to Pinduoduo's financial operations and strategic initiatives. Given the executive nature of his role, he would also participate in managing key financial metrics, possibly involved in financial reporting, forecasting, and advising on mergers, acquisitions, or other strategic investments.
Zhenwei Zheng is recognized as an influential executive in the tech industry, particularly through his work with Pinduoduo Inc., a leading e-commerce platform in China known for its innovative social commerce model. As a key figure at Pinduoduo, Zhenwei Zheng has played a significant role in driving the company’s growth and technological advancements. His responsibilities likely include overseeing various aspects of the company's operations and strategies, particularly in the areas of technology and product development. His expertise in these areas has been crucial in helping Pinduoduo maintain its competitive edge in the rapidly evolving e-commerce landscape. Under Zheng's leadership, Pinduoduo has focused on enhancing user experience and expanding its platform capabilities, which has contributed to the company's success in attracting a broad consumer base and increasing its market penetration. His contribution reflects a commitment to innovation and efficiency, essential components in Pinduoduo's mission to create a unique and engaging shopping experience for its users. Zhenwei Zheng’s work continues to be instrumental in shaping the trajectory and success of Pinduoduo in the competitive e-commerce industry.
David Liu is a notable figure associated with Pinduoduo Inc., which is a prominent Chinese e-commerce platform. He joined Pinduoduo with a wealth of experience in finance and investment. Before his role at Pinduoduo, David Liu held several positions in the financial sector, including senior roles in investment banking at reputable institutions like Morgan Stanley. At Pinduoduo, he has been involved in strategic planning and corporate development, contributing to the company's rapid growth and success in the competitive e-commerce landscape. His expertise has helped Pinduoduo enhance its market position by innovating and expanding its business model to meet the diverse needs of consumers in China.

Peng Cheng is a prominent figure associated with Pinduoduo Inc, one of China's leading e-commerce platforms. He is known for his role as the Chief Technology Officer (CTO) of the company. Peng Cheng holds a pivotal position in overseeing the technological development and innovation at Pinduoduo. Before joining Pinduoduo, Peng Cheng accumulated a wealth of experience in the tech industry. He has been involved in various capacities that emphasize technological advancement and strategic development. As CTO, his responsibilities include leading the company's tech initiatives, enhancing platform efficiency, and driving improvements in user experience through technology. Pinduoduo, founded in 2015, has rapidly grown to become a major player in the Chinese e-commerce market, leveraging a unique social commerce model that encourages group buying. Under Peng Cheng's technical leadership, the company continues to explore and integrate cutting-edge technologies to maintain its competitive edge and cater to its vast consumer base. His contributions and leadership in technology make him a key individual in Pinduoduo's ongoing success and its efforts to innovate within the competitive e-commerce landscape.
Ladies and gentlemen, thank you for standing by and welcome to the PDD Holdings, Inc. Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today. Sir, please go ahead.
Thank you, operator. Hello, everyone and thank you for joining us today. PDD Holdings earnings release was distributed earlier and available on our website at investor.pddholdings.com as well as through GlobeNewswire services.
Before we begin, I would like to refer you to our safe harbor statement in earnings press release, which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Joining us today on the call are Mr. Chen Lei, our Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Co -- Executive Director and Co-Chief Executive Officer; as well as Ms. Liu Jun, our VP of Finance. Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then walk us through our financial results for the fourth quarter and fiscal year ended December 31, 2024. During the Q&A session, Lei and Jiazhen will answer questions in Chinese and we will help translate. Please note that English translation is for reference only. In case of any discrepancy, statements in the original language should prevail.
Now it's my pleasure to introduce our Chairman and Co-Chief Executive Officer, Chen Lei. Lei, please go ahead.
Hello everyone. Thank you for joining our earnings call for the fourth quarter and fiscal year of 2024. 2024 is a pivotal year for advancing our high-quality development strategy to drive a sustainable growth of our platform and supply chain ecosystem. We extended our high-quality development vision for the platform to supply chain through a series of initiatives such as fee reductions, merchant support policies and trust and safety updates. We systematically implemented proactive measures in platform operations, merchant services supply chain and logistic innovations, leading our platforms into a new phase of high quality-driven growth. We delivered stable results over the past quarter. Our Q4 revenue reached RMB 110.6 billion, up 24% year-on-year and full year 2024 revenue totaled RMB 393.8 billion, growing 59% year-on-year, which represents a moderation in revenue growth.
As mentioned in previous quarters, our significant ecosystem investment, coupled with fast-changing external environment and intensified competition landscape will impact short-term financials. However, our commitment to ecosystem investments remain unwavering. And we are confident that these efforts will deliver sustainable long-term returns. In the second half of 2024, we accelerated our high-quality development strategy through several major initiatives, including a CNY 10 billion fee reduction program, logistics support measures to promote e-commerce services in remote regions and high-quality merchant support program. We are pleased to see that these initiatives have started to bear fruits.
Among these, the CNY 10 billion fee reduction program has enabled over 10 million merchants to enhance operational efficiency and reduce costs, while the promotion service fee rebate program alone has begun to deliver significant savings to eligible merchants. Our logistics support measures tailored for remote regions drove double-digit order volume growth and extended free shipping to nearly 100 million consumers in these regions. The first phase of high-quality merchant support program supported a large number of high-quality merchants and brands across 1,000 agriculture regions and industrial zones in their transition towards high-quality development. At the same time, we also established the merchant rights protection committee to formalize communication channels with merchants. We have rolled out upgrades to the aftersales service system and introduced a range of improvements and governance measures to address issues such as order dispute resolutions.
These initiatives aim to enhance the overall business environment for merchants and build a platform ecosystem that benefits all participants. The platform rooted in agriculture will remain committed to supporting agriculture industry through sustained investments in agriculture technology, supply chain innovation and training for next-generation farmers. Over the past year, our long-term initiatives such as Pinduoduo Smart Agriculture Competition, Global Agriculture Innovation Challenge, Pinduoduo Academy Growing Competition and the Agriculture Research Fund have delivered encouraging results. For example, the 6 finalist teams in the fourth Pinduoduo Smart Agriculture Competition achieved breakthroughs in yield, efficiency and energy consumption through digitally optimized new farmland with the innovations now being applied in real-world setting.
In terms of our global business, our mission to provide global consumers with high-quality products remains unchanged. Guided by this vision, we will continue to focus on supply chain efficiency, service innovation and ecosystem development while observing high compliance standards. Our goal is to build a trusted global platform and shopping environment that service consumers worldwide. Looking ahead, high-quality development will remain at the core of our strategy in 2025. We will continue to focus on the healthy and sustainable development of merchants and supply chain and certainly advance the high-quality development strategy. One step at a time, we will work on strengthening merchant rights protection, stepping up support for high-quality merchants and broadening quality supply on the platforms.
In addition, through supply chain investments, we aim to accelerate the supply of high-quality products to remote regions and in doing so, enhance the product offerings for consumers in less accessible areas and foster a win-win ecosystem for consumers, merchants and the communities we serve. Together, we will drive the sustainable development of our platform and the broader e-commerce ecosystem.
And now I will hand it over to our Co-CEO, Zhao Jiazhen, to share more about our development plans in 2025.
[Interpreted] Thank you, Lei. Hello, everyone. This is Zhao Jiazhen. Thank you for joining our fourth quarter and full year 2024 earnings call. Over the past year, we remain focused on advancing our high-quality development strategy, driving ecosystem upgrades and supply chain transformation to foster a mutually beneficial environment for consumers, merchants, industries and society. Supported by sustained progress of our high-quality development strategy and a steady macro economy recovery, we delivered stable performance in quarter 4 and throughout 2024.
Since last year, we have rolled out a series of initiatives on the CNY 10 fee reduction program and cultivated a wave of quality supplies through comprehensive end-to-end merchant support. Our initiatives have not only empowered merchants with innovative business models but also drove supply chain upgrades. In addition, our logistics support measures have significantly improved the efficiency and quality of new supplies to the Western regions, providing consumers in these regions with a more diverse selection of high-quality products.
In Q4, our quality merchant support program expanded its reach across agricultural and industrial zones in China. This included areas known for specialties such as [indiscernible], women's footwear; [indiscernible], maternal infant products and [indiscernible]. By providing comprehensive support throughout the value chain, covering product development, marketing, operations and supply chain management, we have nurtured a new generation of merchants and brands with strong innovation capabilities. This trailblazers are leading their industries beyond homogeneous competition towards sustained high-value growth.
For example, [indiscernible] County in Guangdong province, once the leading production hub for the Chinese women's footwear industry was nearly brought to standstill due to market shifts. Last winter, local merchants utilizes our platform's data analytics to create a [indiscernible] line sandals tailored for female consumers. Through the transformation of traditional supply chains, a midsized factory managed to reach a daily output of 15,000 pairs. This not only saved tens of thousands of jobs but also charted a path for quality supply chain-driven transformation.
To amplify this momentum, we strategically allocated platform traffic resources. For example, the CNY 10 billion program has rolled out new campaigns like [ 10 billion ] consumption vouchers and super double savings, accelerating branding building for quality merchants. During last year's Double 11 shopping festival, we launched multiple rounds of super double savings, offering extensive force to quality supplies. In just the first 2 rounds the other volume exceeded 61 million.
From the consumer side, our ecosystem investments has enriched their lives by delivering a broader range of profitable high-quality products. These products span across categories like fresh produce, snack beauty and baby care, further boosting consumer satisfaction and trust while also activating new consumer needs. These offerings have gained traction in both urban and rural markets becoming daily essentials for diverse groups and catering to increasingly segmented demand. During the Chinese New Year, our logistics support management for remote regions drove a surge in orders for seasonal specialties with Western regions witnessing remarkable growth in several trending categories.
Our long-term investments in high-cost developments are now bearing fruit. The platform ecosystem continues to create value for both supply and demand side. These tangible outcomes reinforce our resolve to deepen the investments in ecosystem development.
In January 2025, we established the merchants rights protection committee, which I chair. The committee coordinates efforts across our platform. Our goal is to fully understand merchant needs, systematically collect feedback, optimize their experiences and refine service framework, all critical sets towards fortifying our platform ecosystem.
Following its launch, we introduced the promerchant initiatives such as abnormal order alerts and low price risk warnings alongside upgraded services to boost the net merchant transaction efficiency. These efforts are complemented by granular data and latest tools designed to optimize merchants' return on investment.
Recently, the committee has formalized a regular communication mechanism with merchants and held its inaugural merchant roundtable. Following extensive consultation with business across sectors, we unveiled 4 major upgrades, including a noncompliance alert system to intensify protections for merchants rights.
As Chen Lei emphasized, 2025 will see us redouble efforts to advance our high-quality development strategy. We will leverage our digital capabilities and amplify investments across both supply and demand chain. At the same time, we will accelerate the delivery of high-quality products to the Western regions. This will help revitalize economic vitality across regions and build a ecosystem where merchants, industries, consumers and society to act collectively.
I will now hand over to Jun. She will provide you with an update on our quarter 4 and full year financial performance.
Thank you, Jiazhen. Hello, everyone. Now let me walk you through our financial performance and the fourth quarter and fiscal year ended December 31, 2024.
In terms of income statement in Q4, our total revenues increased 24% year-over-year to RMB 110.6 billion and 59% year-over-year to RMB 393.8 billion for full year 2024. This was mainly driven by an increase in revenues from both online marketing services and transaction services. Revenues from online marketing services and others were RMB 57 billion this quarter, up 17% compared to the same period of 2023. Our transaction services revenue this quarter were RMB 53.6 billion, up 33% versus the same period of 2023. Moving on to costs and expenses. Our total cost of revenues increased 36% from RMB 35.1 billion in Q4 2023 to RMB 47.8 billion this quarter. For full year, our total cost of revenues increased 68% to RMB 153.9 billion, mainly due to increased fulfillment fees and payment processing fees.
On a GAAP basis, total operating expenses this quarter increased 19% to RMB 37.2 billion from RMB 31.4 billion in the same quarter of 2023. On a non-GAAP basis, our total operating expenses increased to RMB 35.1 billion this quarter from RMB 29.3 billion in Q4 2023. During the fourth quarter, we continued to invest in the platform ecosystem through a range initiatives, including fee reductions, merchant support policies and trust and safety updates. Our total non-GAAP operating expenses as a percentage of total revenues was 32% in Q4, compared to 33% same quarter 2023. For full year 2024, total non-GAAP operating expenses were RMB 122 billion, up from RMB 90.3 billion in 2023.
Looking to specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB 31.1 billion, up 19% versus the same quarter of 2023. During Q4, we continue to give back to consumers through promotional campaigns, while keeping up our investment in marketing to strengthen our platform's visibility. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue this quarter was 28% versus 30% for the same quarter in 2023. For the full year, non-GAAP sales and marketing expenses increased from RMB 79.8 billion to RMB 109.1 billion in 2024. Our non-GAAP G&A expenses were RMB 998 million in Q4 versus RMB 674 million in the same quarter of 2023.
Our annual non-GAAP G&A expenses were RMB 2.8 billion in 2024, versus RMB 1.8 billion last year. Our research and development expenses were RMB 3 billion in the fourth quarter on a non-GAAP basis and RMB 3.8 billion on a GAAP basis. We are committed to advancing the core technology capabilities of our platforms and will continue to increase our investment in R&D, laying a solid foundation for our high-quality development strategy and driving ecosystem upgrade and the supply chain transformation.
On a GAAP basis, operating profit for the quarter was RMB 25.6 billion versus RMB 22.4 billion in the same quarter of 2023. Non-GAAP operating profit was RMB 28 billion versus RMB 24.6 billion in the same quarter of 2023. Non-GAAP operating profit margin was 24% this quarter compared with 28% in for the same quarter of 2023. For the full year, non-GAAP operating profit increased from RMB 65.8 billion to RMB 118.3 billion in 2024. Net income attributable to ordinary shareholders was RMB 27.4 billion for the quarter and RMB 112.4 billion for the full year.
In the fourth quarter, basic earnings per ADS was RMB 19.76 and diluted earnings per ADS of RMB 18.53 versus basic earnings per ADS of RMB 17 and diluted earnings per ADS of RMB 15.83 in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders was RMB 29.9 billion for the quarter and RMB 122.3 billion for the full year. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB 20.15 versus RMB 17.32 in the same quarter of 2023. This quarter, we delivered stable financial results supported by the resolute execution of our high-quality development strategy. Looking ahead, we will continue to prioritize investments in platform ecosystem as the cornerstone of our long-term value creation strategy. That completes the income statement.
Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB 29.5 billion in Q4 and RMB 121.9 billion for the full year of 2024 compared with RMB 36.9 billion in the same quarter of 2023 and RMB 94.2 billion in 2023. As of December 31, 2024, the company had RMB 331.6 billion in cash, cash equivalents and short-term investments. Thank you.
This concludes my prepared remarks.
Thank you, Jun. Next, we'll move on to the Q&A session. Today's Q&A session, Lei, Jiazhen and Jun will take questions from analysts on the line. We could take a maximum of 2 questions from each analyst. Lei and Jiazhen will answer questions in Chinese and we will help translate. Operator, we are open for questions.
[Operator Instructions] Your first question comes from Joyce Ju from Bank of America.
[Foreign Language] I will translate my question. First, we noticed that over the past 2 quarters, the company has taken several major initiatives in platform ecosystem development and merchant support. As management just mentioned, the company plans to further increase investment in these areas. How should we think about the long-term goals for platform ecosystem development and how this will drive the platform's further growth? My second question is on top of supply side and merchant ecosystem investments, could management also share what has been done on the consumer side recently? For example, what new initiatives were launched during the past fourth quarter e-commerce peak season? And what will be the strategic priorities for consumer side in the future?
[Foreign Language]
[Interpreted] Joyce, this is Chen Lei. Let me take your question regarding our platform ecosystem.
Well, since the second quarter of 2024, in line with the overall direction of high-quality development of our platform ecosystem, we have rolled out a series of initiatives that's centered around the protection of merchant rights. For example, measures such as the CNY 10 billion fee reduction program and high-quality merchant support program have been effective in lowering the operational cost for merchants. By leveraging our platform's digital technologies and resources, we are also enabling manufacturers to invest in their product innovation and also technology, while at the same time, broadening their marketing assets.
Well, these initiatives are deepening our long-term efforts in building a stronger ecosystem and also extend that into the supply side, driving meaningful supply chain upgrades, which is central to our strategy of pursuing high-quality development.
We are noticing that in certain industries, some merchants are facing homogeneous competition, which squeeze profits for businesses and also undermines innovation and investments.
We as a platform connecting manufacturers, merchants and consumers, we have launched a series of policies to support high-quality suppliers. By cutting fees and streamlining operations, we are encouraging merchants to invest more in their products and services. This is leading our platform onto a new stage of quality-driven growth.
As the supply chain evolves and modernizes, more high-quality merchants and products have been emerging. This gives consumers greater variety, higher quality and a smoother shopping experience, bringing real benefits to consumers and creating a healthy ecosystem that benefits all stakeholders in the long run. This is our thoughts on the platform ecosystem investments.
[Foreign Language]
[Interpreted] Hello, this is Zhao Jiazhen. Let me take your question.
Our initiatives on the supply side and merchant ecosystem complement our consumer-centric strategy. We remain dedicated to serving consumers, providing more value and better services, which have been fundamental to us.
During the promotion campaigns in the fourth quarter, we upgraded our super level savings initiative by layering additional savings on top of the discount line from our CNY 10 billion program. This not only provides substantial savings to consumers but also serves as a new growth engine for brands. Both the number of participating brands and products in the campaigns reached record high with total order volume achieving a significant milestone. For the double [indiscernible] promotion, we further enhanced the program by launching 10 billion consumption vouchers, reinforcing our focus on consumer benefits.
At the same time, our RMB 10 billion supply chain investments have prioritized empowering quality merchants and driven our logistics support measures in remote regions, sparking fresh trends. For example, during the Chinese New Year shopping festival this year, the platform accelerated the flow of Chinese New Year specialties into Western regions by offering both traffic support and promotion programs.
By investing in both supply and demand, we have seen a surge of quality supply enriching consumer choices with premium options and fostering a virtuous cycle. Moving forward, we will continue to focus on our long-term high-quality investments on the consumer side to build a mutually beneficial platform ecosystem.
Your next question comes from Alicia Yap from Citigroup.
[Foreign Language] So I have 2 questions. The first one is on the competition in the domestic e-commerce market has been intensifying for some time. Could management share some insights into any recent developments in the competitive landscape and whether there will be any adjustment to the company's development strategies in the future? The second question is regarding our global business. We noticed that recently, the global business may stay some changes in macro conditions and policy. Could management share more about these external changes that might impact the company's business and what measure the company plans to take in response?
[Foreign Language]
[Interpreted] Hello, this is Zhao Jiazhen. Let me take this question regarding competition.
We have consistently emphasized that competition not only inherent to the e-commerce industry but also a critical driver of its continuous advancement. Our major platforms are actively refining their strategies and services to better respond to shifting consumer preferences, a dynamic that underscores the sector's robust and healthy evolution.
As industry and technology continue to evolve, e-commerce platforms are actively exploring innovative business models and technological applications to elevate user experiences and operational efficiencies. We're closely monitoring this development and continuously optimizing our platform ecosystem and services to better meet consumer demand under our quality-driven strategy.
Our strategic investments across the consumer side, supply side and platform ecosystem has delivered tangible results, demonstrating that the viability of hard core development as a sustainable growth pathway. Over the years, we have cultivated a trusted brand reputation and deep consumer loyalty, which remains our core strength.
At the same time, we recognize the imperative for profound supply-side transformation in the e-commerce industry. Our current investments in merchant welfare and industrial sustainability will over time improve consumer experience by safeguarding merchant rights, enhance service quality and satisfaction and diversifying quality supply. This, in turn, will drive the healthy growth of the platform ecosystem.
We will continue to strengthen our advantage by making meaning long-term high-quality investments. By doing so, we aim to deliver an expanding range of premium products and a seamless, trustworthy shopping experience for consumers.
[Foreign Language]
[Interpreted] Alicia, this is Chen Lei. Let me answer your question about the global business.
For our global business, as we discussed in recent quarters, changes in the external environment have been accelerating and competition remains fierce. And in addition, there may be changes in macro policies that are related to our operations. And in response to this, first and foremost, we will strictly comply with the laws and regulations to ensure full compliance in our operations. And on that basis, we are also proactively communicating with external parties across the market to continuously refine our services and compliance standards. However, these external changes taken together will inevitably bring some challenges to our global business.
And despite the changes in the external environment, we remain very committed to delivering high-quality products to the global consumers. This will not change. We will stay focused on our business, investing in supply chain improvements, service quality and platform ecosystems while ensuring high-quality growth and upholding compliance standards. By doing so, we strive to further deepen our core strength in supply chain efficiency and operations capabilities that we have accumulated over the years.
Furthermore, we will continue to explore new business models, experiment with innovative localized supply chain solutions, deepen our market presence, introduce new product categories and services and to build a more robust and sustainable platform infrastructure for the long run.
Our commitment to high-quality sustainable development applies equally to our global business. Beyond offering high-quality products at affordable prices, we aim to meet global consumers' rising expectations of us. As highlighted in previous quarters, we implemented merchant support policies and trust and safety updates across the supply chain and platform ecosystem, empowering innovative high-quality merchants. At the same time, we firmly regulate merchants who violate platform rules and harm consumer interest. These efforts have started to yield positive results and we are committed to executing them for the long term.
At the same time, as a growing e-commerce platform, we are aware of the rising attention our global consumers are paying to corporate social responsibility. We are actively seeking opportunities to utilize our technological capabilities and platform resources to create greater value for the communities we serve.
We have launched several initiatives in global corporate social responsibility and have a few new ideas for the future. Our team is dedicated to exploring this area and taking concrete steps towards becoming a responsible corporate citizen on a global scale. There is much more we can do and our team is very excited about the opportunities ahead.
And through the long-term investments and consistently doing the right thing, we hope to strengthen our core competitive advantages and build long-lasting trustworthy relationships with merchants and global consumers. This is my thinking on the global business.
Operator, I think we have time for 1 more analyst.
Your next question comes from Kenneth Fong from UBS.
[Foreign Language] We noticed that the company's revenue growth has slowed in the recent quarters and profit have been fluctuating. So how should we think about the revenue and profits trend in the near term? And my second question is, in the past 2 quarters, management has talked about taking on more social and platform responsibility. And this topic can also be mentioned by management today. So can management share more about what company hopes to achieve with perform responsibility in the long run and how to balance that with these duties to shareholders?
Kenneth, this is Jun. Let me take your first question regarding growth and profits. Well, regarding this quarter's financial performance, as mentioned earlier in the prepared remarks, external uncertainties and intense competition have impacted our short-term revenue growth. And at the same time, our increased investments in merchant support and platform ecosystem development may create fluctuations in profitability. We expected fluctuations in revenue growth and profit when we began this investment as part of building a high-quality platform ecosystem and achieving sustainable growth.
Short-term ups and downs won't shake our confidence in long-term goals. We believe that owing through sustained investments and optimization can we create a healthy e-commerce ecosystem. Currently, our efforts have already received positive feedback from merchants and supply-side optimizations are driving new consumption trends on the consumer side, which has started to foster a virtuous cycle. Going forward, we will keep focusing on our high-quality development strategy, investing regularly and patiently to ensure long-term sustainable development.
[Foreign Language]
[Interpreted] Kenneth, this is Zhao Jiazhen. Let me take your second question.
Over the past few quarters, we have noted that assessing the company's performance solely through the short-term financial performance or capital returns does not fit where we are at our development stage.
As a global company in the new era, we're increasing innovation, adapting to change and taking on more social responsibility in the regions where we operate. This aligns with our long-term accountability to shareholders and reflect thoughtful leadership decisions.
For example, our recent focus on supporting quality merchants has provided comprehensive support across product development, marketing, operations and supply chains. We have fostered a group of quality merchants with products and tech capabilities, empowering independent entrepreneurs to streamline their operations, while driving the transformation of the supply chain.
Additionally, our logistics support measures tailored for remote regions have spurred double-digit order growth in Western China and extended nationwide free shipping to nearly 100 million consumers in remote areas. This strategy unlocks new opportunities for merchants to grow their orders in Western China, not only expanding business opportunities for merchants but also benefiting consumers across different regions.
In agriculture, we remain committed to supporting the agricultural industry through sustained investments in agricultural technology, supply chain innovation and training for next-generation farmers. These efforts, along with our current support for quality merchants, promoting agricultural modernization, improving supply chain efficiency, while at the same time, boosting farmer incomes and generating local employment.
Overall, the e-commerce industry is shifting towards quality service experience and innovation, rising high standards for platforms. Our focus on merchants like support for quality merchants and supply chain reforms are both cost driven and tailored to the growing demand on e-commerce platforms. And in the long run, building an inclusive ecosystem that creates value for all participants will set us up for sustainable growth and long-term returns.
Thank you, Jiazhen. And thank you all for joining us today. We look forward to speaking with you next quarter. Thank you and have a great day.
Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]